51% of fund managers avoid their own fund

Say that again? 51% of fund managers avoid their own fund. This is a very bad thing.

It came up in a survey by Morningstar. They examined more than 4,000 mutual funds in America.

So, fund managers make millions by managing your money. But they don't risk their own cash. That's unusual, of course. And alarming. 

Not daring to invest your own cash in a fund says a lot. 

This was also reflected in the study. The funds in which fund managers themselves invested more than $1 million performed above average. They do better than 58% of peers. And that's not surprising, of course. 'Skin in the game' - or putting money into your own fund - is not just a concept. You invest in your own fund when you trust that you are in the right place. 'Put your money where your mouth is.'

Fund managers themselves were not surprised. It also makes sense to them that funds with skin in the game perform better: "It doesn't surprise me at all that funds with managers purchasing their own funds tend to perform better" - Samual Baldwin

The choice is yours.

• Do you entrust your money to managers who don't believe in their own product?

• Do you demand real involvement, and do you opt for funds with 'skin in the game'?

• Do you take full control and choose what you invest in?

Source: Rowan Nijboer, translation by LinkedIn